Why invest in classic motorcycles?
Classic motorcycles are a thrilling investment that will grow at a fantastic rate and deliver tax-free returns. Click here to see a letter from H M Revenue and Customs confirming the tax status of classic motorcycles, proving there is no capital gains tax or income tax on profits from your classic motorcycle collection. Look at the ROI charts on this site and see for yourself. As long as you invest in the right machine, your alternative investment will grow steadily and offer fantastic returns over time. But why are certain classic motorcycle prices increasing?
1. Demographics. New motorcycle sales in the UK through the 1970s were enormous and peaked in 1980 at over 320,000 p.a. (read my article with data to prove this from the MCIA here). This was because most people growing up at this time had a motorcycle prior to buying a car. A lot of people, now in their 40s and 50s, pine after the motorcycles of their youth. There are not enough machines left for riders, let alone investors, so prices will have to increase further.
2. Cost of restoration. The cost of restoration, at present, and without taking into account labour, is approximately two to three times the cost of buying one of these classic motorcycles in excellent condition. Add to that the cost of paying someone to restore the motorcycle and it is clear that this area of the market has enormous room for prices to increase.
3. Many parts for such motorcycles are no longer produced, so the costs of useable spares are soaring.
4. As more people restore such beautiful motorcycles and parade them, more people realise how beautiful they are want to own them. The more people that want such a limited number of these classic motorcycles, then the more prices increase.
5. As investors wake up to the tax-free investment potential, then prices will rise due to further pressure on supply.
6. China banned the import of all motorcycles since 1997 to stimulate home producers. However, some time in the near future, these barriers to entry will be lifted and Chinese collectors will want beautiful, emerging market classic and vintage motorcycles. This will increase pressure further on supply and increase prices.
Motorcycles do not just offer freedom, but classic and vintage motorcycles also offer freedom to invest tax-free, with high returns (See the ROI charts here). How many alternative investments can you ride and even admire when they’re standing still?
Why do wealthy people invest in classic vehicles?
Celebrities such as Chris Evans, Charles Saatchi, Nick Mason, Jay Kay and Rowan Atkinson all invest in classic cars, because they know that, when they invest in the right vehicle, their tax-free investment grows much faster than inflation. They are also passionate about their vehicles and get a great deal of joy from driving them, riding them and owning them. They are normally pictured smiling when they’ve sold a vehicle because they know they have been investing tax-free and have just booked a fantastic profit.
Why use a motorcycle broker?
Because you need to understand which motorcycles are classics and are likely to increase in value and which motorcycles are not classics. You need a classic motorcycle expert to know whether an example is genuine and has great resale potential. Classic motorcycle experts will know the little details that prove whether a motorcycle is genuine, or just very pretty.
Roaring great fun
These classic and motorcycles are not just incredible tax-free investments, but they are roaring great fun. Solo riding is fantastic- you are the journey, rather than being catapulted through the journey in a bubble. Riding a motorcycle brings the senses alive like nothing else. Every sense is heightened and you are one with your machine, one with your journey and one with your investment.
Once you ride a motorcycle you have accessed a whole new lifestyle. Just check out The Ace Café in London and you will see they have different nights for motorcyclists of all varieties. The internet is crammed with different motorcycle clubs to cater for every taste. Everyone you meet, who also rides a motorcycle, will welcome you to a great, friendly new world. Or just ride your investment alone and enjoy the journey and enjoy the returns.
Important legal notice
I am not registered with any financial authority and am not qualified, or allowed, to give financial advice. The views on this website are only my personal opinions and are in no way offered as financial advice. You must make your own decisions regarding any investments.